Disney offered to directly purchase - not a ROFR

[Dean]

As noted, this has been previously reported. It does seem hit or miss and they do not seem to have a formal plan to consistently do so. Reminds me of a Marriott employed resale agent who would sometimes have deals offered to her that were so good she'd buy them herself then resell them rather than list them for the seller. And I know a number of resellers that do the same thing as a company both for DVC and other timeshares. It can be a win-win situation but can also come across as taking advantage depending on specifics and the knowledge and education of the the timeshare owner.

 

[FamilyGuy]

I find it odd that Disney would only offer a figure so low that if there were a private sale for BCV at a similar per point price, it would not even pass ROFR!

Then again Disney does it better than most - extracting the cash from our wallets that is...

 

[tor]

As noted, this has been previously reported. It does seem hit or miss and they do not seem to have a formal plan to consistently do so. Reminds me of a Marriott employed resale agent who would sometimes have deals offered to her that were so good she'd buy them herself then resell them rather than list them for the seller. And I know a number of resellers that do the same thing as a company both for DVC and other timeshares. It can be a win-win situation but can also come across as taking advantage depending on specifics and the knowledge and education of the the timeshare owner.

People need to educate themselves before any business transaction. How many times have you seen one person pay more for a car or airline ticket then another. Even something simple as gasoline I still see people paying 10 cents a gallon more because the didn't know it was cheaper down the road. If you don't do your due diligence you will be taken.

 

[chalee94]

ummm...how would it make any sense for disney to offer MORE than ROFR? you can quibble with what sort of margin disney should go for with no negotiation involved, but that's a very silly comment.

if people want to make a poor deal because they don't want the hassle of selling it, i don't have a problem with the lowball offer.

 

[Doctor P]

One also needs to remember that there would be no commission on this sale (typically paid by the seller), which means that $58 is really closer to getting $66.00 from a resale through an agent. Add in closing costs and the possibility of needing to pay some maintenance fees for used points in a negotiated sale, and this could be equivalent to closer to $70 or $71 for a comparable market sale without any of the hassle. Not a great deal, IMHO, but one that might not be quite as lopsided as it seems at first glance.

 

[3DisneyKids]

I don't consider it sneaky and I beleive the OP 100%...she did not misrepresent nor did her mother misunderstand. As Tom and others have said, DVC has a history of offering $55/point to buy directly. That she got and offer for $58 just means they are offering more these days (more more b/c it is BCV).

It is not at all sneaky on DVC's part. This is common practice in many industries...think about if you trade in a car vs. selling it privately? Same thing, really. You get about half from the trade-in as you would from selling it yourself. Of course, trading it in is much easier...just as selling back to DVC directly is easier and you have your money asap. If it was me, I'd go to Tom at the TimeShare Store and go through a little "extra" hassle to get more money...but then again, I sell my old cars instead of trading them in.

 

[LIFERBABE]

One also needs to remember that there would be no commission on this sale (typically paid by the seller), which means that $58 is really closer to getting $66.00 from a resale through an agent. Add in closing costs and the possibility of needing to pay some maintenance fees for used points in a negotiated sale, and this could be equivalent to closer to $70 or $71 for a comparable market sale without any of the hassle. Not a great deal, IMHO, but one that might not be quite as lopsided as it seems at first glance.

I agree, all the other costs need to be added back in. That and waiting several weeks/months for a check as opposed to what DVC offered.
Not saying its a good deal, but if you got in at $79 per point, vacationed for 3 years and lose $8 bucks a point, that's not an awful deal either especially if you stripped the points from next year too.

 

[Dean]

People need to educate themselves before any business transaction. How many times have you seen one person pay more for a car or airline ticket then another. Even something simple as gasoline I still see people paying 10 cents a gallon more because the didn't know it was cheaper down the road. If you don't do your due diligence you will be taken.

No question, however many put Marriott and DVC on a pedestal when it comes to timeshares and this is inconsistent with many people's view of them on the pedestal. Actually this is likely the price range that DVC needs to purchase at to truly make any money on it. All they do at $10-20 per point is keep their sales staff going and compete with their retails sales which brings in likely around 50% profit.